Posted on 11/06/2007 4:44:12 AM PST by ml/nj
LONDON (Thomson Financial) - Gold hit its highest price since January 1980, following record high oil prices which stoked inflation jitters.
The precious metal rose to as high as 819.93 usd per ounce, its highest price since the 1980 peak of 850 usd, just as London's Brent oil hit a record high of 92.36 usd per barrel.
(Excerpt) Read more at fxstreet.com ...
I can sympathize with that, but it isn’t legal.
50 Cents under spot eh? That’s sweet! I haven’t found anything for under spot, but it’s also harder to find silver in Canada. I’m thinking of a road trip to Niagara Falls New York to see if I can pick up some good deals. Up to 15.57 now...I pay cash for most of mine so there’s no paper trail.
NYMEX crude index $97.00 right now. Interesting to actually see it when the hucksters have been saying it all day.
Yet.
I don't think that a business has to accept cash. I know it would be stupid not to, but that is a different matter. Cash may be legal tender, but that doesn't mean a business has to accept it, does it?
The purpose of that picture -- delightfully photoshopped though it may be -- is to show that a day may come when the American people will no longer accept the government's writ.
I think that is an assumption.
Not an assumption. A fact. Read the verbiage on every Federal Reserve Note.
Many mail order and online companies will not accept cash.
Let me see than, when my roommate was telling me to buy gold in 1980 because it was going over 800 oz, I should have bought it at about $400 - $600 an ounce. In todays dollars (inflation adjusted) I would break even at $1000 - $1502 without any profit. I will just keep on buying hard goods with my fiat currency thank you very much.
What they cannot do is refuse to take cash or cash equivalents in denominations of FRN's and demand gold and silver specie instead. Yes, I know the Constitution says they can, but the Supreme Court invalidated that clause of the Constitution in a 1937 decision under extreme pressure from FDR.
Gold and silver is not legal tender, I agree. They never outlawed barter through. It is interesting that we are in a point in time that we are even talking about it!
I also don't accept checks (from off the street people) or credit cards in my business. Yes, I still accept cash. But I don't think I have to, but that would be suicide because nobody has silver or gold to trade.
Wow! Look at it now?
Highly speculative how ? Volatile how ? Like NASDAQ from 1000 to 5000 in 4 years ? Investing in Gold is not a short term profit scenario. Gold's assent to higher prices is driven by economic fundamentals such as the government inflating the money supply, cyclical ebbs and flows of mine production, low real interst rates. These cycles build up over time just like market fundamentals that favor stocks build up over time. They take decades to play out.
Gold is a terrible investment. Except for when it isn't.
Those times of when it "isn't last for years though. If you bought an equal dollar amount of Gold and the S&P 500 Spider ETF going back 1,2,3,4,5,6,7,8,9, or 10 years ago today, you would have done better with Gold. Now the 20 years before that you would have done better with the S&P 500. These cycles go in multi-decade increments. I do not think we will be done with this cycle until Gold is in the low to mid 1000's of dollars.
GOLD = GREEN S&P 500 = BLUE
Since 11/6/2006, Gold has outperformed the S&P 500 by approximately 35%.
Since 11/6/2005, Gold has outperformed the S&P 500 by approximately 60%.
Since 11/6/2004, Gold has outperformed the S&P 500 by approximately 55%.
Since 11/6/2003, Gold has outperformed the S&P 500 by approximately 70%.
Since 11/6/2002, Gold has outperformed the S&P 500 by approximately 155%.
Since 11/6/2001, Gold has outperformed the S&P 500 by approximately 200%.
Since 11/6/2000, Gold has outperformed the S&P 500 by approximately 175%.
Since 11/6/1999, Gold has outperformed the S&P 500 by approximately 150%.
Since 11/6/1998, Gold has outperformed the S&P 500 by approximately 125%.
Since 11/6/1997, Gold has outperformed the S&P 500 by approximately 20%.
“Silver is being dragged much higher , too.”
Cha-Ching, Baby! :)
Your calculations for gold are correct for the specific period that you selected. Thanks for explaining why I am losing money. Meanwhile, I will just keep counting the 10 year 1,000 percent return on my gold fund, which is the period for which I invested.
I thought that was of the quote of the day!
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